Applying the Theory of Planned Behaviour: The Role of Subjective Norms in Shariah- Compliant Savings Adoption among Muslim EPF Members

Abstract

This study investigates the influence of subjective norm on the intention to invest in Shariah-compliant savings (Simpanan Shariah) among Muslim members of the Employees Provident Fund (EPF) in Malaysia. Grounded in the Theory of Planned Behaviour (TPB), subjective norm is conceptualised as a critical social factor that reflects perceived social pressure from important referents such as family, friends, and religious authorities to perform or not perform a particular behaviour. Drawing on prior literature, subjective norm captures the extent to which individuals are motivated to comply with these social expectations in shaping their investment decisions. Adopting a quantitative research approach, data were gathered from Muslim EPF members and examined to evaluate the proposed hypothesis, which suggests a significant positive association between subjective norm and investment intention. The results demonstrate that subjective norm has a significant and positive effect on the intention to invest in Simpanan Shariah, thus confirming the hypothesis. This implies that individuals who experience greater social influence or endorsement from important referent groups are more inclined to show stronger intentions to invest in Shariah-compliant savings.This study adds to the growing body of Islamic finance literature by offering empirical support for the influence of subjective norm on investment intentions within the EPF Simpanan Shariah framework. The results provide valuable insights for policymakers and financial institutions to utilise social influence mechanisms such as community involvement and religious outreach to encourage greater participation in Shariah-compliant savings among Muslim investors.